JK Tyre & Industries Ltd. reported a significant increase in net profit for the fourth quarter of FY26, with earnings rising 80% to Rs 178 crore. The company also announced a Rs 4,980 crore investment plan to expand its tyre manufacturing capacity for trucks and buses by 2030, aiming to capitalize on robust market demand.
The company's revenue from operations grew by 12.36% to Rs 4,223.44 crore in Q4 FY26, compared to Rs 3,758.60 crore in the same period last year. Total expenses for the quarter stood at Rs 3,909.65 crore. Revenue from the India business surged 14.6% to Rs 3,903.25 crore, driven by a 21% increase in sales volumes, particularly a 42% growth in the original equipment market.
However, revenue from the Mexico business declined by 16% to Rs 377.57 crore. Despite geopolitical uncertainties, including the ongoing West Asia conflict, exports remained resilient. The company's total income, including other income, was Rs 4,232.83 crore, marking a 12% year-on-year increase.
“FY26 has been a landmark year for JK Tyre. We delivered record volumes across segments, attaining the highest ever annual consolidated revenue of Rs 16,384 crore and achieving an EBITDA of Rs 2,089 crore, an increase of 25 per cent over the previous year.”
Raghupati Singhania, Chairman & Managing Director
For the entire fiscal year FY26, JK Tyre's net profit rose by 52.34% to Rs 775.901 crore, with total revenue reaching Rs 16,384 crore, up 10.9% year-on-year. The company achieved an EBITDA of Rs 2,089 crore, a 25% increase over the previous year, attributed to strong domestic demand and favorable economic conditions.
In a separate filing, JK Tyre's board approved a Rs 4,980 crore investment for expanding its Truck & Bus Radial and Passenger Car Radial tyre production in phases. The funding will be sourced through internal accruals and debt, as the company aims to maintain its market presence amid growing demand.
“The company's India business continued to anchor growth during Q4, reflecting a strong domestic demand. Sales volumes grew by 21 per cent on a year-on-year basis across segments, led by an impressive 42 per cent growth in OE market.”
JK Tyre earnings statement
The company also declared a dividend of Rs 4 per equity share for FY26. JK Tyre shares closed 1.97% higher at Rs 394.10 on the BSE on Tuesday.
Background
JK Tyre's strong financial performance in FY26 reflects the company's strategic focus on expanding its market presence in India and addressing growing demand across various segments. The investment in manufacturing capacity is aligned with industry trends and economic reforms that have bolstered demand.
Looking ahead, JK Tyre's strategic expansion and robust financial performance position it well to capture future growth opportunities in the tyre industry. Investors and stakeholders will be keenly watching the company's execution of its expansion plans and its impact on market share.
